Successful 2023 for Swiss insurers
07.02.2024
In 2023, Swiss private insurers’ premium volume once again experienced pleasing growth, according to projections by the Swiss Insurance Association SIA. This sees the private insurance industry live up to its reputation as a stabilising force for the Swiss economy. In addition, the association emphasises the strength of private-sector retirement solutions – whether in hedging major risks or in retirement provision. The foundations of this latter area are to be shored up in the near term.
Switzerland’s private insurers can once again report pleasing growth at their annual press conference, thereby living up to their reputation as a stabilising force for the Swiss economy. However, they do not want to rest on their laurels. Trends relating to the overarching conditions in Switzerland, in particular, are being scrutinised. ‘We feel a certain sense of personal accountability as an industry association – and this is growing in the current political climate,’ points out Stefan Mäder, chairman of the insurance association. He believes that the overarching conditions of the Swiss economy, which are linked to economic freedom and personal accountability, are increasingly coming under pressure: ‘The call for greater state involvement damages Switzerland’s ability to innovate and, by extension, harms our economy and our country’s prosperity in the long term.’ He also believes that this would impact the insurance industry’s scope for development.
Growth in all branches of non-life business
Nevertheless, the private insurance industry can look back on a successful 2023, with premiums growing by around three per cent in the non-life business. ‘This trend is not just due to ongoing cost increases in the past year, but also robust societal demand,’ said Urs Arbter, association director, commenting on the development. While the growth in liability and property insurance is largely due to higher repair costs and the appreciation of the goods insured, wage growth and, not least, new insurance products – such as cyber insurance – led to a higher premium volume.
Supplementary health insurance also experienced a slight uptick in portfolio size: Premium volume grew by 2.5 per cent while premiums themselves only increased slightly. The picture is rather different for the field of daily sickness benefits, which expanded by 5.8 per cent. This was primarily caused by wage increases and the fact that premiums needed to be adjusted upwards following higher benefit payments.
More information: Personal accountability as a success factor for major risks and retirement provision | SIA (svv.ch)